Department Pricing Formula

Enter/Edit Item Price and Cost | Use Price Levels

You have the option of entering your new item prices manually or letting Point of Sale calculate them for you using a department pricing formula. When Point of Sale calculates new prices, it does so by applying the department margin (or markup) to the average item cost to arrive at the regular price.

You specify the profit margin or markup to be used in your department records or on individual item records in inventory. If you enter one value, Point of Sale calculates the other.

Point of Sale uses the following pricing formula:

Example

With an average unit cost of $10 and a 40% margin.

(10 x 100)/(100 40) = $16.67 regular price

If you want Point of Sale to calculate new item price(s) with a department pricing formula:

• Enter a margin or markup in your department records

• Assign items to departments as you add them to inventory

• DO NOT enter item prices when adding the new item to inventory, Point of Sale will calculate them for you

The pricing formula is applied only to new items in inventory (previous price = $0). Receiving reorder merchandise at a new cost on a voucher does not automatically update item prices, however Point of Sale alerts you so you can adjust your price if desired. You can maintain your desired profit margin by manually editing the margin or markup on the item record back to the original level.

Why aren't reorder item prices automatically updated when cost changes?

If you DO NOT want Point of Sale to calculate new item price(s):

• Do NOT define department or item margins or markups

• Enter your item prices manually at anytime in inventory

• Point of Sale will still calculate and display the margin and markup on the item record, but does not use them to calculate the item price(s) unless you manually edit them